EDITED BY PAWEŁ BRYŁA MANAGING AGRICULTURAL ENTERPRISES Exploring Profitability and Best Practice in Central Europe Managing Agricultural Enterprises Paweł Bryła Editor Managing Agricultural Enterprises Exploring Profitability and Best Practice in Central Europe Editor Paweł Bryła Department of International Marketing and Retailing University of Łódź Lodz, Poland ISBN 978-3-319-59890-1 ISBN 978-3-319-59891-8 (eBook) DOI 10.1007/978-3-319-59891-8 Library of Congress Control Number: 2017947300 © The Editor(s) (if applicable) and The Author(s) 2018 This work is subject to copyright. 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Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Contents Part I Managerial Issues in Agricultural Enterprises in Poland 1 1 Agricultural Enterprises in Poland 3 Paweł Bryła 1.1 Agricultural Enterprises in the Country’s Economy 4 1.2 Managerial Issues in the Agricultural Enterprises in General 14 2 Profitability in Polish Agricultural Enterprises 27 Paweł Bryła 2.1 Main Factors Influencing Profitability 27 2.2 Planning and Forecasting Profitability 36 3 Managerial Challenges in Polish Agricultural Enterprises 43 Paweł Bryła 3.1 Sales Potential 43 3.2 Competitiveness 48 3.3 Partnerships and Cooperation 54 v vi Contents 3.4 Human Resources 60 3.5 Risk Management 66 4 Good Practices and Unresolved Problems in Polish Agricultural Enterprises 77 Paweł Bryła 4.1 Good Practices 77 4.2 Unresolved Problems and Gaps 88 4.3 Suggestions for Market-Based Services 93 Part II Managerial Issues in Agricultural Enterprises in the Czech Republic 103 5 Agricultural Enterprises in the Czech Republic 105 Hana Urbancová 5.1 Agricultural Enterprises in the Country’s Economy 106 5.2 Managerial Issues in Agricultural Enterprises in General 109 6 Profitability in Czech Agricultural Enterprises 133 Hana Urbancová 6.1 Main Factors Influencing Profitability 133 6.2 Planning and Forecasting Profitability 137 7 M anagerial Challenges in Czech Agricultural Enterprises 145 Hana Urbancová 7.1 Sales Potential 147 7.2 Competitiveness 149 7.3 Partnerships and Cooperation 150 7.4 Human Resources 152 7.5 Risk Management 159 Conten ts vii 8 Good Practices and Unresolved Problems in Czech Agricultural Enterprises 165 Hana Urbancová 8.1 Good Practices 165 8.2 Unresolved Problems and Gaps 172 8.3 Suggestions for Market-Based Services 174 Part III Managerial Issues in Agricultural Enterprises in Hungary 181 9 Agricultural Enterprises in Hungary 183 Krisztián Kovács 9.1 Agricultural Enterprises in the Country’s Economy 183 9.2 Managerial Issues in Agricultural Enterprises in General 193 10 Profitability in Hungarian Agricultural Enterprises 209 Krisztián Kovács 10.1 Main Factors Influencing Profitability 209 10.2 Planning and Forecasting Profitability 216 11 Managerial Challenges in Hungarian Agricultural Enterprises 225 Krisztián Kovács 11.1 Sales Potential 227 11.2 Competitiveness 230 11.3 Partnerships and Cooperation 231 11.4 Human Resources 232 11.5 Risk Management 233 11.6 Good Practices and Unresolved Problems 236 11.7 Suggestions for Market-Based Services 238 viii Contents Part IV Managerial Issues in Agricultural Enterprises in Central Europe: A Synthesis of Country Studies 241 12 A General Overview of Agriculture and Profitability in Agricultural Enterprises in Central Europe 243 Judit Kocsis and Klára Major 12.1 Size of the Sector 244 12.2 Farm Structure 247 12.3 Products 250 12.4 Foreign Trade 252 12.5 Human Resources 257 12.6 Managerial Issues in Agricultural Enterprises in General 259 12.7 Main Factors Influencing Profitability 262 12.8 Planning and Forecasting Profitability 263 13 Managerial Challenges in Central European Agricultural Enterprises 267 Judit Kocsis and Klára Major 13.1 Methodology of the Qualitative Research 268 13.2 Main Findings of the Interviews 270 13.3 Sales Potential 272 13.4 Competitiveness 275 13.5 Partnerships and Cooperation 276 13.6 Human Resources 277 13.7 Risk Management 279 13.8 Good Practices 280 13.9 Unresolved Problems and Gaps 281 13.10 Suggestions for Market-Based Services 282 Index 285 List of Figures Fig. 1.1 The number of agricultural holdings in Poland in thousands (2005–2015) (Source: Adapted from Central Statistical Office of Poland (2016: 471)) 5 Fig. 1.2 Farms by area groups in Poland (%) (2015) (Note: For the reasons of space, we simplify bar names – the exact intervals are as follows: <=1; 1.01–1.99; 2.00–4.99; 5.00–9.99; 10.00–14.99; 20.00–49.99, and >=50.00; Source: Adapted from Central Statistical Office of Poland (2016: 473)) 6 Fig. 1.3 Employed persons in Polish agriculture in thousands (2005–2015) (Source: Adapted from Central Statistical Office of Poland (2016: 242)) 8 Fig. 1.4 Gross agricultural output (intermediate consumption and gross value added) in Poland in million zlotys (2005–2015) (Source: Adapted from Central Statistical Office of Poland (2016: 473)) 10 Fig. 1.5 Market output (crops and animals) in Poland in million zlotys (2005–2015) (Source: Adapted from Central Statistical Office of Poland (2016: 473)) 11 Fig. 3.1 Polish exports of agri-food products in million zlotys (2005–2015) (Source: Adapted from Central Statistical Office of Poland (2016: 570)) 44 ix x List of Figures Fig. 5.1 Land use in the Czech Republic in thousand hectares (2010–2013) (Source: Adapted from Czech Statistical Office (2014)) 110 Fig. 5.2 The role of neighbouring countries in exports and imports of the Czech Republic (2013) (Source: Adapted from Heczková (2014)) 114 Fig. 5.3 Working persons in agriculture by age groups in the Czech Republic (2000–2013) (Source: Adapted from Czech Statistical Office (2014)) 116 Fig. 9.1 The sectoral structure of the agricultural output in Hungary (2014) (Source: Adapted from HCSO (2015b)) 186 Fig. 9.2 Agricultural holdings by legal forms and type of farming in Hungary (2013) (Source: Adapted from HCSO (2015a)) 190 Fig. 9.3 Commodity structure of foreign trade in agricultural products in Hungary (2015) (Note: Data for January–May. Source: Adapted from HCSO (2015a)) 196 Fig. 9.4 The distribution of private holders and non-paid family workers in Hungarian private holdings by age groups (2013) (Source: Adapted from HCSO (2015a)) 201 Fig. 10.1 Utilised Agricultural Area by land use in Hungary (2015) (Source: Adapted from HCSO (2015)) 210 Fig. 10.2 Utilised arable land use in Hungary (2013) (Source: Adapted from HCSO (2015)) 211 Fig. 10.3 The highest agricultural qualification among private holders in Hungary (2013) (Source: Adapted from HCSO (2015)) 214 Fig. 10.4 The highest agricultural qualification among non-paid family workers (holders excluded) in private holdings in Hungary (2013) (Source: Adapted from HCSO (2015)) 215 Fig. 12.1 Agri-food exports of Central European countries by destination (%) (1999–2010) (Note: NMS – New Member States. Source: Adapted from Jámbor (2013: 26)) 252 Fig. 12.2 Share of agricultural goods in total exports in Central European countries in extra-EU trade (%) (2012) (Source: Adapted from European Parliament (2014: 18)) 255 Fig. 12.3 Share of agricultural goods in total imports in Central European countries in extra-EU trade (%) (2012) (Source: Adapted from European Parliament (2014: 19)) 256
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